Record sales for Flight Centre despite “subdued trading environment”.
Flight Centre Travel Group has just released its financial results for the six months to 31 December, with global TTV up 8.8% to $8.138 billion. Revenue also increased 4.6% to $1.103 billion, but the overall profit result of $141 million was down 9%.
The company said its underlying pre-tax profit was in line with revised expectations, but lower than the record for the previous corresponding period “when the large Australian leisure business delivered stronger profits in superior trading conditions”.
Revenue growth was slower than normal, largely brought about by lower gross margins in Australia and Canada, but shop and business numbers increased 4% to 2759 during 2014 calendar year, with almost half of Flight Centre’s global network now located out of Australia.
The period included investment by Flight Centre in the Top Deck and Buffalo Tours joint ventures, with Buffalo Tours now operating ground services for FC customers in Thailand, Cambodia and Laos, with imminent expansion into Bali, Hong Kong, China, Singapore and Malaysia.
The company is paying a 55c per share fully franked interim dividend, and continues to target a full year pre-tax result of between $360 million and $390 million.
More details in today’s issue of Travel Daily.